The price movement on the chart of the GBP/USD currency pair was seen to be more flat yesterday than the clear downward pattern exhibited at the beginning of the week.
Last Monday, the price has plunged from the height of 1.21000 to the level of 1.19400.
But on Tuesday yesterday, the price first rose to the level of 1.20600 before falling back to the level of 1.19400 which still remains the support level when making the price.
However, the price is still seen to be moving in a bearish trend as the increase made is also hindered by the barrier level of the Moving Average 50 (MA50) in the 1-hour time frame on the GBP/USD chart.
While developments in the UK have been slow for investors to see an impact on the Pound, the US dollar is seen as more of a driver for price movements.
The development of protests in China continues to be monitored which will influence the direction of the US dollar as a safe-haven currency.
Meanwhile, investors are also waiting for the United States (US) economic data to be published, but the focus is on the speech from Federal Reserve (Fed) Chairman Jerome Powell early Thursday morning.
If the following factors finally support the strengthening of the US dollar, the price on the GBP/USD chart will continue to decline lower towards the end of the week.
Passing the 1.19400 support level, the price will move lower to the 1.18000 focus zone which was the focus in mid-November.
On the other hand, if the price surges higher past the 1.2000 zone and also breaks through the MA50 barrier, investors are likely to see a foreshadowing for price bullish trend movement again.
The continued rise is likely to test the 1.21000 zone after last week saw prices struggle to stay above the zone.
A successful break above that resistance would mark a recent 16-week high with the next target around 1.22000.
